Raymond LTD
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BSE Code:
500330
NSE Code:
RAYMOND
Business Profile
Business Profile
Raymond (RAYMOND), incorporated in 1925, is engaged in five business areas comprising textiles, denim, engineering files and tools, aviation and designer wear. It is India`s leading producer of worsted suiting fabric with over 60% market share.
The company`s textile division has a distribution network of more than 4,000 multi-brand outlets and over 400 exclusive retail shops in the domestic market itself. Besides, the company is also a major exporter of fabrics and exports to more than 50 countries including US, Canada, Europe, Japan and the Middle East. Its denim division has an installed capacity of 30 million meters and produces ring denims.
The engineering files division (JK Files & Tools) is a large producer of steel files globally and a market leader in the domestic market. The designer wear division offers designs by some of the finest Indian designers comprising an eclectic mix of formal, office and evening wear for men and women.
The aviation division (Million Air) provides air charter services and has a fleet of three helicopters and one executive jet.
The company`s subsidiary company Raymond Apparel markets readymade garments under brands such as Park Avenue, Parx & Manzoni. Another wholly-owned subsidiary, Silver Spark Apparel, sells factored garments in international markets.
The company has entered the children`s ready-to-wear apparel segment with its new brand called Zapp! The target age group for the store is between 4 and 12 and the company has plans to open 12 such stores by March 2007.
Financials
Raymond registered a steep drop of 53.75% in net profit of Rs 53.7 million for the quarter ended June 2007 from a profit of Rs 116.1 million for the quarter ended June 2006.
Net sales declined 25.47% to Rs 2,091.3 million for the quarter ended June 2007 from Rs 2,805.9 million for the quarter ended June 2006.
Total income dipped 20.81% to Rs 2,363.7 million from Rs 2,984.7 million for the quarter ended June 2006.
The earnings per share (EPS) of the company stood at Rs 0.87 for the quarter ended June 2007.
Recent Developments
16-MAY-07
Raymond is anticipating its retail revenue to rise by two-third in three years in effect to the company`s move to increase the number of its stores to 950. Raymond expects the revenue from the stores to increase from the current Rs 7 billion to Rs 11 billion to 12 billion in 2009-2010.
10-MAY-07
Apparel major Raymond and Italian apparel brand Grotto are planning to open 60 GAS exclusive brand outlets (EBOs) through a 50:50 joint venture. The 60 EBOs for the premium fashion brand GAS will be set up in the next three years subsequent to the setting up of additional 12 flagship stores.
16-APR-07
Italian fashion brand, GAS, a 50:50 joint venture (JV) by Raymond and Grotto SpA may consider a manufacturing option in India.
06-APR-07
Raymond, plans to more than double its network of retail stores to 950 2010. Most of these stores will come up in small towns, where business is growing sharply.
29-MAR-07
The company is planning to enter into the automobile sector to enhance its business. To enter the automobile furnishing sector, the group is setting up a joint venture with Treves SA, USD 1.3 billion French company.
Future Plans
Raymond is planning to increase its retail stores from 433 to 950 and expects the revenue from the stores to increase from Rs 7 billion in the present to Rs 11 billion to Rs 12 billion in 2009-2010. Most of these stores will come up in small towns.
The company is also planning to foray into automobile furnishing sector by way of a joint venture with Treves SA.